– Aliko Dangote predicted that the naira will fall if
subsidy is removed
– He urged Nigerians to invest the country
– He advised the government to put the masses into
consideration when taking decisions
It seems Aliko Dangote’s prediction is coming to pass as the
richest man in Africa predicted that a dollar may be bought
for N500 if fuel subsidy is removed.
The federal government announced on Wednesday, May 11
that it has removed subsidy on petrol which increased the
price from N87 to N145.
READ ALSO: Buhari is ready to devalue naira?
The removal of the subsidy also affected the naira as on
Friday, May 13, reports showed the dollar sold for N290
and N360 at the Central Bank of Nigeria and black market
respectively and there are indication is will get worse.
Dangote in an interview with Vanguard in 2015 spoke about
Nigeria’s economy and what will happen if subsidy is
“The issue with subsidy is that government needs to block
all loopholes. If there’s no subsidy, it will affect our foreign
exchange, we’ll end up buying a dollar at N500, because
there’s no VAT on petroleum products. That’s why the
import of petroleum products is taking about 30% of our
foreign reserve. We just need to make sure that there’s no
siphoning of money.
“The refining business requires volume. If you don’t have a
massive volume, there’s no way you’ll make money. Most
of the refineries in Africa are running at a big loss. It’s not
possible for government officials to successfully manage oil
businesses. It’s good enough if they remove the subsidy,
but you can check with neighbouring countries like Senegal.
If a poor person in Senegal can afford to pay subsidy, why
can’t a poor person in Nigeria afford to pay. I think there
must be something for the masses, which should be in
terms of power, social insurance, good education system,
good roads etc.”
Dangote also advised Nigerians to invest in Nigeria and
stop taking money to western countries. He however said it
“This requires determination and seriousness. These things
are humanly possible and we should be able to do them.
It’s not really the work of the government to make a
country prosperous, it’s the work of individuals because the
duty of the government is to facilitate, but government will
not have the money to invest.
“That’s why it’s shameful that some Nigerians go and keep
their money abroad. It is very difficult when we have a
huge chunk of our money abroad and we want foreigners
to come and invest. They won’t believe that the
environment is good. It won’t work that way.
READ ALSO: Buhari’s petrol price hike affects Naira
“The only way is for us to lead, even though we can’t do all,
but that leadership will pave the way for others to invest
their money in our economy. In fairness, it’s difficult for
people to find a place where they can make good money
like Nigeria but it is also very tough. Once you are in
business in Nigeria, you won’t be able to find enough sleep.
Doctors always advice that we sleep for six to seven hours. I
don’t think people who sleep for that long can operate
businesses in Nigeria”
Meanwhile, amidst report that the naira had been
devalued, the CBN says such a decision was never taken by
the financial institution.
Isaac Okoraofor, the acting director of the company’s
corporate communication department, described the
speculations as the handiwork of those bent on seeing
Nigeria do official work on the social media.